By decision of the European Commission of 20 June 2016, the plan of AS KredEx Krediidikindlustus to secure short-term export transactions, i.e. those with payment terms under two years, to EU or OECD countries of destination with credit insurance supported by state funds, was deemed to be in conformity with EU competition rules in instances

- where the exporter is a small or medium-sized enterprise (SME) which meets the definition set out in the recommendation of the European Commission of 6 May 2003 (about the definitions of micro, small and medium-sized enterprises) and whose total annual export turnover does not exceed EUR 2 million, or
- where the intention is to insure a specific individual risk.

The authorisation from the European Commission has been provided for a term expiring on 31 December 2023.

Temporarily non-marketable risks are insured on terms similar to those offered by AS KredEx Krediidikindlustus on regular short-term transaction credit insurance, with some exceptions. The main terms and conditions include:

  • Policyholder: An exporting operator registered in the Estonian commercial registry whose seat of economic activity is Estonia and which is an SME [1]
  • Risk insured: purchaser’s insolvency arising from commercial or political risk.
  • Buyer: legal person or sole proprietor
  • Buyer’s country of location: EU or OECD country, except for Estonia
  • The export transaction relates to the sale of goods or the provision of a service to a foreign country.
  • Insurance cover up to 95%
  • The payment term provided for buyers does not exceed 720 days (inclusive of the production period in relevant instances).
  • Claim waiting period 180 days
  • The annual insurance premium ranges from 0.2% to 4.5% of the insured capital. The insurance premium depends on the buyer’s risk category
  • In addition to the insurance premium, once a year a credit limit fee has to be paid for every buyer for whom a credit limit is being sought
  • The currency of the insurance contract is the euro.
  • Transactions with related parties are not insured.
  • Insurance does not apply to contractual penalties, interest on arrears, bank service fees, customs duties or other such costs excluded under the insurance contract or to any disputed unclear claims.
  • Insurance does not apply to transactions effected by enterprises which operate in the field of gambling or which are in difficulties [2] or to transactions related to the decommissioning or construction of nuclear power plants; the production, processing or distribution of tobacco or tobacco products; investments in greenhouse gas emission reductions; or investments in airport infrastructure.

[1] If an individual risk is being insured, the exporter does not have to be an SME.

[2] A definition of an entrepreneur in difficulties is provided in Article 2 (18) of Regulation No. 651/2014 of the European Commission (EU) on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union, declaring certain types of aid as compatible with the internal market.